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Canton MI real estate is one of the state's remaining growth locations. Michigan has been called a one state depression, lagging the rest of the nation for years, and with the manufacturing base continuing to dwindle, the state may languish for years to come.


However, Canton is a town in Southeast Michigan which is experiencing solid growth. In fact, this once small farming town has blossomed into one of Michigan's largest communities, with a population that may hit 100,000 in not too many years.


New developments, restaurants, and housing are popping up to meet canton MI real estate demand.


Many of the new housing units going up are in charming developments that are close-knit, creating interaction among neighbors, and a quaint sense of community that is a throwback to earlier times.


There are also charming upscale suburban complexes as well, larger Estate homes, and numerous apartments and condos.


The arts are flourishing as well, with a new Village Theater that has opened up in the heart of town.


The Canton Thearter's site is at: http://www.canton-mi.org/villagetheater/faq.asp


Parks, nightlife, quaint shops, family activities, and strong economic growth all make Canton a desirable place to live.


However, even though Canton is one of Michigan's bright spots, the overall state economy is having an effect everywhere. No place is completely immune.


This has created people who have ended up in over their head for reasons outside of their control.


These people have become motivated sellers. Perhaps their bank has sent them a notice of default and they are wondering what they can do. Or maybe they have been or will be transferred out of state for a new job and they can't seem to sell their home. Or they may be making two mortgage payments and desperately need to unload one.


Other people are looking to purchase a home but because of bruised credit or not having enough of a down payment, in addition to tighter lending standards, they can't get traditional bank financing for a home.


At the same time, these people may be sick of throwing away money on rent, making a landlord rich.


Well, there is a solution to both motivated seller and buyer of Canton MI real estate.


And it's called the lease option....also known as the "rent to own."


Lease options are becoming increasingly popular in Michigan as a way to sell your home on terms, and a way to purchase a home if you have bruised credit, can't get a conventional bank loan, or simply don't want to deal with the hoops you have to jump through for bank financing.


Lease options have numerous benefits for both sellers and buyers, so if you need to sell your home, or if you want to purchase Canton MI real estate, you'd do well to educate yourself on this strategy.


Advantages for Sellers


  • You can have someone take over your monthly mortgage payments. Facing foreclosure? Job transfer out of state? Paying two mortgages? Putting a tenant-buyer into your home to take over your monthly payments with an option to purchase your property maybe the way to go.


  • You can almost always get above market rents when you do a lease option....and for the agreed upon purchase price of your home, you can usually get FMV (fair market value) for your home. Try getting the appraised price of your home in a soft real estate market, like the one Michigan is currently in. You'll be waiting a long time. The reason people who want to rent to own Canton MI real estate are willing to pay closer to FMV and above market rents is simple: many of them can't get traditional bank financing, and therefore, are willing to pay closer to the appraised value of the home for a shot at home ownership.


  • The tenant-buyers will treat the home well. Remember: this is not the same as renting. These are people who have an option to purchase your home, and, therefore, they almost always treat the home as if it is their own...because it may very well become their own home if they exercise the option.


  • You, the seller, get to keep the property income tax deductions during the option period since you are still on the mortgage. Talk to your accountant about this. However, once the option is exercised, then the tenant-buyers becomes the legal owner, and this benefit will cease for you...but you've sold your home!



Advantages for Buyers of Rent To Own Canton MI Real Estate


  • Part of your rent payment each month goes toward the purchase price of the home! These are called "rent credits."


    For example, if you were paying $1,200-$1,300 a month in rent you may have around $250 or $300 dollars a month going toward helping you purchase the home. That's several thousand dollars after only a year. This allows you to build true equity.


  • You can actually get into a home with poor credit. And then as you make consistent payments, your credit score will improve, and you also have the time frame of the option (usually 12 to 24 months) to further strengthen your credit so that you can obtain the traditional bank financing you may need to purchase the home near the end of the option. Also, real estate investors like us have access to credit repair systems that you can use to further increase your credit score, which will help you get a lower interest rate when it comes time for bank financing.


  • The home price established in advance. This is great because if the home appreciates in value over the option term, that means you have even more equity when you exercise the option! For example, if you lease option a Canton MI real estate home at an agreed upon purchase price of $150,000 and by the end of the option term in, say, 24 months, it is worth $170,000, you've just gotten yourself a 20 thousand dollar gain in equity in addition to having rent credits allotted the entire time toward the purchase price!


  • Conversely, if the home depreciates in value during the term of the option, and you haven't yet exercised the option, you can choose to just let the option expire and not purchase the home. Talk about flexibility!



As you can see, whether you're a seller or buyer the rent to own option is a great way to sell your home on terms and a great way to buy a home.


However, there are some risks. This is because if you don't set it up right, then either the seller or the buyer could be at a major disadvantage. Like anything in life, doing lease options correctly takes experience.


As just one example, if you are a tenant-buyer of a lease option home, and the contracts are not done properly, and the home appreciates in value significantly, you may have a seller who decides to not sell you the home after all when you try to exercise the option since he or she may be able to capture that equity gain themselves by selling the Canton MI real estate home.


This example is not meant to scare you, but to just illustrate how important it is to do the rent to own right so both the seller and buyer are protected.


Real estate investors like us here at www.Buy-Sell-Michigan-Real-Estate.com have access to a team who have done hundreds of lease options in Michigan in the last few years. We can help both the seller and the buyer and set up the transaction properly. Visit us to find out how we can help.


Dan Ho is a real estate investor in Michigan. Visit canton MI real estate for more info and to get the assistance of experienced real estate investors on employing the rent to own strategy.


Source: www.articlecity.com